2006 (6) TMI 284 - AT - Central Excise

Appeal Rejected for Delay: Tribunal Upholds Commissioner's Lack of Power to Condone

The Appellate Tribunal CESTAT, New Delhi upheld the rejection of an appeal by the Commissioner (Appeals) due to delay beyond the statutory limit under ... Stay/Dispensation of pre-deposit Issues:1. Condonation of delay beyond the statutory limit under Section 35F of the Central Excise Act, 1944.Analysis:The judgment by the Appellate Tribunal CESTAT, New Delhi revolves around the challenge to the order of the Commissioner (Appeals) rejecting an application for condonation of delay. The Commissioner (Appeals) had rejected the appeal as time-barred, filed after 15 months beyond the prescribed limit of six months, which he was not empowered to condone under Section 35F of the Central Excise Act, 1944. The applicant contended that the Commissioner should have considered the application on merits following directions from the High Court, emphasizing that the Commissioner lacked the authority to extend the condonation period beyond the statutory limit.The authorized representative for the department argued that the Commissioner had complied with the High Court's direction by reexamining the application for condonation of delay and making a decision in accordance with the law. Reference was made to a Division Bench judgment of the High Court, which held that if a statute provides a period of limitation and a maximum period for condonation, the authority cannot extend it. The judgment highlighted that the Commissioner was obligated to follow the High Court's directions and could not question the validity of such directions, even concerning statutory provisions.The judgment further discussed the statutory limit of the Commissioner (Appeals) to condone delay under Section 35, emphasizing that the Commissioner could only allow a further period of 30 days if satisfied that the delay was due to sufficient cause. It was noted that the Commissioner could not question the High Court's direction and was required to decide the application for condonation of delay on merits. The judgment acknowledged the debatable issue of whether a direction could empower the Commissioner to exceed the statutorily conferred powers, leading to the waiver of pre-deposit and granting of interim stay for the appeal's final hearing in due course.In conclusion, the judgment underscores the importance of adhering to statutory limitations for condonation of delay and the obligation of authorities to follow directions from higher courts, highlighting the need for a thorough examination of applications for delay condonation based on merits within the statutory framework.